Magnificent Seven Underperforms Since Start of 2026, But Wall Street Sees Buying Opportunity

According to Morgan Stanley and other Wall Street institutions, the Magnificent Seven (NVDA, GOOGL, META, MSFT, TSLA, AAPL, AMZN) have underperformed since the start of 2026, but strategists are growing bullish on a potential rebound. The Magnificent Seven ETF (MAGS) has remained nearly flat year-to-date, while semiconductor stocks surged and the S&P 500 has recorded double-digit gains.

Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson stated on July 6 that capital is expected to flow back from semiconductor stocks to hyperscalers as the market rewards companies showing greater discipline in AI capital spending. Goldman Sachs' Ben Snider similarly noted that hyperscalers' valuations are now attractive, having fallen to levels last seen during the March 2020 market crash and October 2022's significant correction. Goldman Sachs has begun discussing increasing positions in the Magnificent Seven with clients.